3. Announcement of prohibition of sound producing devices during the meeting.

Chairman Vaughns announced that the ringing of and use of cell phones, pagers
and similar sound-producing electronic devices are prohibited at the meeting.
She advised that any person responsible for the ringing or use of a cell phone,
pager, or other similar sound-producing electronic devices may be removed from
the meeting.

4. Approval of Minutes

-On motion to approve the minutes of the February 17, 2004 Regular Meeting
and the February 27, 2004 Special Meeting: unanimously approved (Black, Flynn-absent).

Executive Director Burns is pleased to present the March Special Recognition
Award to Dorothy Fields who staffs the front counter at Human Relations. Ms.
Fields started her career as a transit operator in 1991. In her current position,
she has consistently provided outstanding service to Muni employees. She goes
out of her way to offer reliable and friendly service. Ms. Fields thanked
everyone adding that the job is exactly what she wanted and is where she needs
to be as she loves to help people. Chairman Vaughns extended her appreciation
on behalf of the board.

APTA recently held it's annual Legislative Conference in Washington, D.C. Directors
Vaughns and Kasolas attended the conference on behalf of the MTA. Other city
representatives included Supervisors Ammiano and Dufty. Meetings were held
with Congressman Pelosi, Senator Boxer and the staff of Senator Feinstein to
discuss federal priorities, including the continuation of funding for Third
Street as a top priority.

Over the next weekend, anti-war demonstrations are being planned. This will
require rerouting of buses and the deployment of PCO's to manage traffic.

Muni has arranged for a number of public meetings to discuss the proposed service
adjustments. A notice about these meetings has been posted on buses and on-line.
Staff will gather sign-in sheets, collect comments and suggestions made by
the public and will report back to the board in April. The MTA budget was
submitted on time to the Mayor and Board of Supervisors.

Notice to Proceed was issued for the Metro East project. Because of the contracting
method that will be used for this project, approximately 60 subcontracts will
be coming forward to the board within the next 90 days.

Chairman Vaughns asked staff to include information about Muni's outreach efforts
when they present the Geary Transit Improvement Project.

Fred Stephens, Muni General Manager, presented the Quarterly Service Standards
Report for the quarter ending Dec. 31, 2003. The on-time performance goal
was 82% but Muni achieved 68%. Recent data on this measure shows improvement
and Muni is currently at 71.5%. Staff doesn't expect to meet the 85% on-time
performance goal by July 1. While Muni has put much time and energy into this
goal, it has taken longer than expected to achieve it.

Chairman Vaughns expressed her appreciation to Mr. Stephens, Hursh and Johnson
for the tour. She noted that while Muni has come a long way in four years,
it needs to come together as an organization to either meet the 85% goal or
say that it's unrealistic. Fred Stephens knows that staff is very concerned
about the goal and that given the complexity of Muni's system, modes and schedules,
they are making progress. Chairman Vaughns asked staff to look at it more
pointedly as 68% is unacceptable.

Director McCray asked staff to report back to the board about why people aren't
passing probation. He asked for information about the residency of these employees
as well.

Director McCray also inquired about on-time performance on weekends. He consistently
hears from people that they can't get to church on time. General Manager Stephens
said that he would look into it.

Director Kasolas asked staff to include information about what was actually
achieved in addition to the goal for prior years for future Service Standard
reports. He asked for information about the on-time performance of other transit
properties. G.M. Stephens said he would provide the information.

Gerry Norman, Deputy Director, Department of Parking & Traffic presented
the DPT quarterly Service Standards. Staff will present a report to the board
about the Citations division once it is complete.

Exec. Director Burns announced that on March 2, Prop I was passed by voters.
Jose Cisneros, Deputy Director, External Affairs and Marty Mellara, Assistant
Electrical Engineer, presented Muni's Clean Air Plan. The key point is to
have a zero emission fleet by 2020 by using fuel cell and battery powered buses
in the fleet. With the purchase of 375 low emission diesel buses and installation
of particulate matter traps on older buses, Muni has reduced emissions by 88%
between 1997 and 2003. Muni has the lowest emissions per passenger rate in
the state. Muni plans to maximize the use of zero emission vehicles and incorporate
the use of hybrid buses. The California Air Resources Board is considering
changes to their regulations. Muni has always been in full compliance with
state and federal mandates. Some of the Prop I deadlines are more aggressive
than what Muni can achieve. Prop. I includes replacing the reserve fleet,
but doesn't identify any funds to accomplish that task. Muni is looking at
how to address that issue.

Exec. Director Burns commented that the Controller estimates the cost will
be $20 million over and above the standard bus replacement program. The timeframe
outlined in Prop. I doesn't coincide with federal timeframes. Muni hopes that
Prop. I's passage will bring people together to focus on the common goal of
finding funding sources and lobbying for appropriate legislative changes.
Muni isn't saying that they can't meet the schedule but the timeframes are extremely
ambitious as there is no money identified to replace the reserve buses.

Bridget Smith, Manager, Liveable Streets Program and Manito Velasco, Traffic
Calming Program Manager presented the Page St. Traffic Circle Project. This
project has created much controversy and staff is moving the project into the
end of the trial phase. The residents in the neighborhood have been asked
to vote on the issue. Pending the outcome of the vote, and input received
from other city departments such as the Fire and Police departments, staff will
evaluate the viability of installing permanent traffic circles.

8. Citizen's Advisory Council Report

Dan Murphy, CAC Chairman noted that the CAC had neglected to thank Peter Straus
for walking them through the proposed service adjustments. The CAC has also
met with Nelson Nygard on their draft audit of the MTA's Service Standards.
The CAC feels strongly about the 85% on-time performance standard as it is
unlike other standards. This one is imposed by city charter and is not subject
to change, unless by a vote of the people. BC Transit in Vancouver has more
stringent standards. The CAC has recommendations regarding the Geary Improvement
Project, and thinks it is a terrific program to improve transit for a small
amount of money. It's an excellent example of thinking about affordable programs
that can have a large impact. They support the Clean Air plan in concept.
It's the best possible plan that exists given the constraints and is the most
responsible plan possible. The CAC endorses changing the CARB NOx emission
standard as certifying the hybrid bus is essential. Muni should conduct a
marketing campaign asking riders to take their trash with them and car cleaners
should be put at major terminals. The speed of resolving Passenger Service
Reports is important but the total number of PSR's received doesn't correspond
to rider satisfaction. DPT should incorporate the Transit First policy into
their mission statement. Annual pedestrian accident and fatality reports should
be part of DPT's service standards as well as response time for driveway tows.
(Chairman Vaughns thanked Mr. Murphy for the valuable information.)

9. Public Comment

Stephanie Sellai, GCA Strategies, pointed out that the Page St. Traffic Circles
are very controversial. The Fire Department is against them and they have received
many letters from residents who are opposed. Neighborhood associations are
also opposed as well as the Mayor's Disability Council. Bridget Smith has recommended
against the project and, since grant funds have run out, the project should
be reconsidered.

Jens Raduschewski lives on Fillmore and Hayes where the noise of the 22-Fillmore
buses is excessive and louder than most car alarms. Something has to be done.
He recognizes the need to assist people with disabilities but neighbors are
subjected to beeping every 10 minutes, 24 hours per day. He will discuss this
further with Mike Hursh, the Deputy G.M., Maintenance.

Barry Taranto wonders why LRV on-time performance is so poor when LRV's have
a dedicated right of way. The board needs to get a quarterly report on citations
so they know how PCO's are focusing their efforts. A task force should be
created to settle the rift between PCO's and cab drivers. Muni buses are taking
over the cabstand on 4th and Townsend. They should stage their buses at another
location. Ricardo Villea should receive a special award for diligently removing
signs on Mission St.

THE FOLLOWING MATTERS BEFORE THE MUNICIPAL TRANSPORTATION AGENCY BOARD ARE
RECOMMENDED FOR ACTION AS STATED BY THE DIRECTOR OF TRANSPORTATION, AND CITY
ATTORNEY WHERE APPLICABLE. EXPLANATORY DOCUMENTS FOR ALL CONSENT AND REGULAR
CALENDAR ITEMS ARE AVAILABLE FOR REVIEW AT 401 VAN NESS AVE. #334.

CONSENT CALENDAR

10. All matters listed hereunder constitute a Consent Calendar, are considered
to be routine by the Municipal Transportation Agency Board, and will be acted
upon by a single vote of the Board. There will be no separate discussion of
these items unless a member of the Board or the public so requests, in which
event the matter shall be removed from the Consent Calendar and considered as
a separate item.

(10.1) Requesting the Controller to allot funds and to draw warrants against
such funds available or will be available in payment of the following claims
against the MTA:

B. ESTABLISH TOW-AWAY NO STOPPING ANYTIME - Monterey Boulevard, north side,
at Circular Avenue, from the west end of the driveway of 66 Monterey Boulevard
to the east end of the driveway of 76 Monterey Boulevard.

F. ESTABLISH RESIDENTIAL PERMIT PARKING AREA "R" (2-HOUR TIME LIMIT,
9 AM - 6 PM, MONDAY THROUGH SATURDAY) - Willow Street, south side, between Buchanan
and Laguna Streets and 1200 and 1300 blocks of Buchanan Street, east side, between
Larch Way and Willow Street. (Explanatory documents include a staff report,
and resolution.) (DPT)

RESOLUTION 04-032

(10.3) Authorizing the Director to accept and expend $82,400 in federal Technical
Study Grant funding for the FY2004 Short Range Transit Plan Interim Update and
the FY2006 SRTP. (Explanatory documents include a staff report and resolution.)
(MUNI)

RESOLUTION 04-033

(10.4) Authorizing the Director to issue a Request for Proposals for Contract
No. CS-140: Construction Management Services for the Paratransit Debit Card
System, to evaluate and select the highest-ranking proposer, and negotiate a
contract with the selected proposer, for an amount not to exceed $300,000, and
term not to exceed five years. (Explanatory documents include a staff report,
resolution and financial plan.) (MUNI)

RESOLUTION 04-034

No public comment.

On motion to approve:

ADOPTED: AYES -Casey, Din, Kasolas, McCray and Vaughns

ABSENT - Black and Flynn,

REGULAR CALENDAR

DEPARTMENT OF PARKING AND TRAFFIC

11. Authorizing the Director to execute an emergency interim service agreement
and property use license for towing, storage and disposal of abandoned and illegally
parked vehicles with TEGSCO/San Francisco Auto Return, on substantially the
same terms applicable under the current contract for a term commencing in March
2004, for the purpose of maintaining continuity of service and protecting the
public welfare while the City negotiates a long-term contract for these services.
(Explanatory documents include a staff report, contract and resolution.)

PUBLIC COMMENT:

Mark Gleason, Teamsters Local 6, thanked the Board for their concern about
the workers. They have achieved recognition and look forward to moving forward.

Chairman Vaughns stated that the Chairman and the Director of Transportation
have authorized the execution of this agreement pursuant to the City's emergency
provisions. The action before the board is to ratify the execution of the
interim agreement.

Director Casey asked for information about the number of workers that will
be impacted by the waiver and for how long. Gerry Norman, DPT deputy director,
replied that the waiver applies to the subcontractors who are mostly current
subcontractors with City Tow. The waiver will last for the duration of the
temporary contract, which is expected to terminate in 60 to 90 days. The long-term
contract clearly calls for the full compliance of the MCO and health benefits.

Jim Ruben, Attorney for Tegsco/AutoReturn, commented that they have been asked
to step up to fill in a hole. They haven't had a chance to survey each of City
Tow's subcontractors as negotiations for the long-term contract and for the
transition plan have been happening "round the clock".

Director Casey made a motion to amend the resolution to stipulate that the
waiver of these provisions would be in place for not longer than 60 days.
Director McCray seconded the motion.

Julia Friedlander, Deputy City Attorney stated that the contract has already
been executed. If the board adopted the amendment, it would require a contract
modification. Adoption of a contract modification would be presented to the
board at a future meeting. Because the contract has been fully executed, AutoReturn
would have to agree with the amendment.

Exec. Director Burns commented that AutoReturn will be stepping into City Tow's
shoes in five days, and will be responsible for all towing in the city. This
interim contract is the best way to continue with the current arrangement while
negotiating a long-term contract. If Director Casey's amendment is adopted,
at the end of the 60 days, if the long-term contract hasn't been fully adopted,
we will have a serious problem. It's in everybody's interest to move this
contract quickly.

On motion to amend the resolution to provide a waiver for not longer than 60
days:

AYES - Casey, McCray

NAYES - Kasolas, Din, Vaughns

ABSENT: Black and Flynn

The amendment failed adoption.

RESOLUTION 04-035

On motion to ratify:

ADOPTED: AYES - Din, Kasolas, McCray and Vaughns

NAYES - Casey

ABSENT - Black and Flynn

MUNICIPAL RAILWAY

12. Authorizing the award of a contract to Sedgwick Claims Management Services
for Workers' Compensation Third Party Claims Administration, in an amount not
to exceed $3.183 million per year for five years, with the option of three one-year
extensions to be exercised at the sole discretion of the MTA. (Explanatory documents
include a staff report, resolution and contract.)

PUBLIC COMMENT:

William Rutland, representing Intercare, the service provider for the past
two years, is concerned about their reputation. They have consistently provided
a quality product yet received the lowest score in the process. They are entitled
to know why they weren't selected.

Kevin Hamm, Intercare, requested a debriefing as they were told by staff that
they would receive it. Throughout the past two years, they were told they
were doing an excellent job. They understand the competitive bid requirement,
but this is strange. Prices went up substantially because of the inclusion
of additional services in the RFP such as rehabilitation counselor. Even with
that increase they are still $600,000 less than the Sedgwick proposal.

Exec. Director Burns noted that there have been a few non-substantive and non-material
changes to the contract, all favorable to the MTA. If the board approves this
item, these changes will be made to the contract. Intercare did step into
a situation two years ago on short notice and has performed well under the contract.
This award is simply a matter of the competition required of any public entity.
Staff will meet with Intercare to provide the requested information.

Director Casey suggested that unions and other employee organizations be included
in the process of selecting a vendor in cases where employees are the end users
of the product. In addition, a survey should be conducted among employees
to determine if the care they received was acceptable. He is concerned about
changing a contract without involving the workers through their union.

Exec. Director Burns commented that the suggestion has merit. Staff does
hold regular joint labor management meetings to discuss employee issues.
The City Charter obligates the MTA to use the competitive bid process.

RESOLUTION 04-036

On motion to approve:

ADOPTED: AYES - Casey, Din, Kasolas, McCray and Vaughns

ABSENT - Black and Flynn

13. Authorizing the Director to submit a supplemental appropriation to the
Board of Supervisors for $2,235,683 to fund contract oversight, completion and
closeout costs; construction of an operator restroom; beautification of the
subway vent and; maintenance costs from the Mission & Steuart Hotel project.
(Explanatory documents include a staff report and resolution.)

Glenda Lavigne, Local 200 is unsure about the oversight of these funds. She
wonders if we really need to beautify a vent when we're laying off people.

Norman Rolfe reminded the board that abandoning this sight as a terminal exposed
Muni to additional expenses. Another big item caused by the hotel construction
is the cost of the noise isolation of the track slab. Muni should recover
these and other operational costs.

Exec. Director Burns reminded the board that this is a request for authorization
for a supplemental appropriation as part of the project. All of these funds
are coming from the developer in accordance with the agreement. To expend
these funds, Muni needs appropriation authorization. The developer is paying
for all costs associated with the hotel and these are not funds that are coming
out of Muni's operating budget.

4. Pursuant to Government Code Section 54956.9 and the Administrative Code
Section 67.8 (a) (3), the Municipal Transportation Agency Board will meet in
Closed Session to discuss and take action on attorney‑-client matters
in the following case:

CONFERENCE WITH LEGAL COUNSEL

Anticipated Litigation:

The board secretary noted that the board was meeting with counsel to discuss
anticipated litigation.

(4.1) Approving a settlement with Electric Transit Inc. (ETI), whereby ETI
will be relieved of its warranty, bonding, liquidated damages (including late
deliveries and fleet defects), excess weight penalties, and other various obligations
under Contract No. 888, and the City will be released from any claims that ETI
(or its shareholders) might assert arising out of the Contract, in exchange
for ETI undertaking a $4,500,000 retrofit program, providing $8,000,000 for
Muni's use, providing Muni with $3,000,000 for spare parts, $50,000 for re-assembly
of paint booths, rent payments on Pier 15 for five years, a guaranty from AAI
Corporation of certain performance under this Settlement Agreement, furnishing
parts, equipment, facilities, and technical support to Muni, and assigning all
existing subcontractor and supplier warranties and other obligations to Muni.

Chairman Vaughns announced the board met in closed session to discuss the ETI
settlement with the city attorney. The board voted to settle the case by a
4 to 1 vote with Director Din opposed. (Black, Flynn-absent).

15. Motion to disclose or not disclose the information discussed in closed
session.

On motion to not disclose the information discussed: unanimously approved (Black,
Flynn-absent).

ADJOURN - The meeting was adjourned at 7:38 p.m.

A tape of the meeting is on file in the office of the Secretary to the Municipal
Transportation Agency Board of Directors.

Roberta Boomer
Board Secretary

The Ethics Commission of the City and County of San Francisco has asked us
to remind individuals and entities that influence or attempt to influence local
legislative or administrative action may be required by the San Francisco Lobbyist
Ordinance [ S.F. Campaign and Governmental Conduct Code section 2.100 et seq.
] to register and report lobbying activity. For more information about the
Lobbyist Ordinance, please contact the Ethics Commission at 415-581-2300; fax:
415-581-2317; 30 Van Ness Ave., Suite 3900, SF, CA 94102-6027 or the web site:
sfgov.org/ethics.